The ratings agency Fitch has cut Ireland's credit rating again, due to the Irish bank bailout and a lagging economy.

Meanwhile the Financial Regulator outlined that the levels of defaulting Irish property loans could be worse than anticipated.

Fitch cut Ireland to A+ from AA- and put its rating on a negative outlook, also pointing to lingering uncertainty over the hesitant economic recovery.

The downgrade had an immediate and negative impact on Ireland's borrowing costs on international bond markets.

Fitch said that its downgrade and negative outlook — which now places Ireland on review for a potential further downgrade — was a consequence of Ireland's startling announcements on its debt crisis last week.

Fitch added that Ireland has enough cash stockpiled — more than 34 billion euro — and borrowing capacity to ride through the current crisis, with full funding for government spending secured through mid-2011.